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Chicago, IL – February 7, 2020 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.

Warren Buffett and Berkshire Hathaway have already made a deal in 2020.

Berkshire sold all of its newspaper holdings to Lee Enterprises for $140 million in cash.

Newspapers were near, and dear, to Buffett’s heart.

According to the New York Times, in 2012, he called himself a “newspaper addict.”

But ad revenue has been falling in the newspaper industry for more than a decade as the Internet has eaten into the lucrative classified ad and regular advertising business.

Newspapers lost their moat.

Buffett has often talked about the falling revenue, yet Berkshire kept holding onto its investment.

In 2020, he finally threw in the towel.

Emotional Investing: Everyone Does It

Why didn’t Buffett sell out of the newspaper business years ago?

Obviously, he loved it. He bought the Buffalo News in 1977. It was important to him. But the industry has changed.

Did he let his emotions get the better of him and ignore the fundamentals?

He wouldn’t be the first investor. It’s easy to do.

How Do You Know When to Sell?

1. Watch the revenue. Is it falling every year and isn’t attributable to a temporary issue like a recession? Could be a deeper problem.

2. Watch the earnings. Investors should want earnings that are on the rise. Who wants a company that is seeing a decline for years?

5 Stocks in Tough Industries

1. Mosaic (MOS - Free Report) is a large fertilizer company. It’s a Zacks Rank #5 (Strong Sell) because the 2020 and 2021 earnings estimates continue to be slashed. The agriculture industry has struggled over the last 18 months due to poor weather and the China and US trade dispute. But is there anything fundamentally different about the fertilizer industry?

2. Exxon (XOM - Free Report) is in an industry that appears poised for changes: the fossil fuels. Earnings have been sliding the last 3 years thanks to lower crude and natural gas prices. Shares are down 32% over the last 5 years while the S&P 500 is up 59% during the same time.

3. Warrior Met Coal (HCC - Free Report) supplies premium hard coking coal to the global steel industry. But the steel industry has been struggling due to tariffs in the United States. Warrior is trading with a forward P/E of 5.8 but earnings are expected to fall 35.3% in 2019 and another 35.7% in 2020.

4. US Steel (X - Free Report) is a Zacks Rank #5 (Strong Sell). The steel giant is expected to see falling revenue in both 2020 and 2021 with earnings expected to plunge 1,644% in 2020. Shares are down 64% over the last 5 years.

5. Macy’s (M - Free Report) is in what many have called a “dying industry,” i.e. the shopping mall. But recently it announced it was closing 125 mall-based stores and cutting costs to get more competitive. Revenue peaked in 2015 and is expected to slide through 2022. Are department stores over?

What else should you know about when to sell?

Tune into this week’s podcast to find out.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Zacks' 7 Best Strong Buy Stocks for June, 2020

FREE Report Exclusively for Zacks.com Readers

In a new special report, Zacks experts have chosen 7 Zacks Rank #1 Strong Buy stocks out of 220. These stocks have the greatest potential to increase in price immediately. A recent pick, Activision Blizzard, is up 20% in 2020 and 25% since the market's lows of late March.

For more than 30 years, Zacks' private Strong Buy list has averaged returns that have more than doubled the market. Get your FREE special report now.

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At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +23.52% per year. These returns cover a period from January 1, 1988 through May 4, 2020. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.

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